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What is the rate of return and volatility for the portfolio given below? (For %, round down to 2 places of decimals). Principal $100,000 Investment
What is the rate of return and volatility for the portfolio given below? (For %, round down to 2 places of decimals).
Principal $100,000 Investment in stock A is $ 30,000, Investment in stock B is $70,000
Their statistical properties are given below.
Expected rate of return : stock A: 5%, stock B : 8%
Volatility : StockA: 12%, stock B : 15%, correlation between stock A and stock B is -0.3
Expected rate of return for the portfolio:
Volatility of the portfolio:
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